The state has moved to ease fears among local dairy farmers that when it strikes a trade deal with the US, there will be unfair competition.
Livestock Principal Secretary Harry Kimtai assured farmers that they won’t get into an unfair deal that will jeopardize their welfare.
Washington wants unrestricted access to its dairy products to the Kenyan market in the ongoing free trade negotiations.
“Negotiations on modalities to allow the importation of milk from the US are ongoing with the government pledging to protect the local dairy industry from unfair competition from the imported products,” said Kimtai.
The Kenya Dairy Board noted that the influx of milk imports can negatively affect the local dairy sector. The US has an excess of over 250 million liters of milk.
Washington and Nairobi began the negotiations in August for a bilateral trade agreement that the two countries hope could serve as a model for additional agreements across Africa.
At the moment, Kenya has imposed 50 percent duty under the East African Community Common External Tariff on all milk imported outside the regional trade bloc.
Washington is worried that the current terms may discourage American farmers from exporting milk to Kenya.
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The International Dairy Foods Association (IDFA), a representative body of the US dairy manufacturing and marketing industry in a letter told the US Trade Representative Robert Lighthizer that Kenya’s protectionist measures over its dairy sector limit US dairy’s ability to enter the Kenyan market.
Economists have raised concerns that the US is likely to demand reciprocation of the trade deal that will enable American firms to export their products to Kenya without restrictions.
“Looking at America’s approach, they would want to bring more of their cheap goods here taking advantage of the trade deal,” said Wilson Songa, former Trade Principal Secretary.
